Reviewing Chimera Investment (NYSE:CIM) & DigitalBridge Group (NYSE:DBRG)

DigitalBridge Group (NYSE:DBRG) and Chimera Investment (NYSE:CIM) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, earnings, risk, dividends, valuation, analyst recommendations and profitability.

Profitability

This table compares DigitalBridge Group and Chimera Investment’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DigitalBridge Group	18.57%	4.78%	2.29%
Chimera Investment	4.27%	7.36%	1.36%

Institutional & Insider Ownership

92.7% of DigitalBridge Group shares are held by institutional investors. Comparatively, 48.4% of Chimera Investment shares are held by institutional investors. 3.6% of DigitalBridge Group shares are held by insiders. Comparatively, 1.5% of Chimera Investment shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Dividends

DigitalBridge Group pays an annual dividend of $0.04 per share and has a dividend yield of 0.3%. Chimera Investment pays an annual dividend of $1.48 per share and has a dividend yield of 11.4%. DigitalBridge Group pays out 66.7% of its earnings in the form of a dividend. Chimera Investment pays out -370.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Chimera Investment has increased its dividend for 1 consecutive years. Chimera Investment is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares DigitalBridge Group and Chimera Investment”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DigitalBridge Group	$228.14 million	11.37	$70.52 million	$0.06	236.60
Chimera Investment	$760.95 million	1.41	$176.07 million	($0.40)	-32.35

Chimera Investment has higher revenue and earnings than DigitalBridge Group. Chimera Investment is trading at a lower price-to-earnings ratio than DigitalBridge Group, indicating that it is currently the more affordable of the two stocks.

Risk and Volatility

DigitalBridge Group has a beta of 1.77, suggesting that its stock price is 77% more volatile than the S&P 500. Comparatively, Chimera Investment has a beta of 1.83, suggesting that its stock price is 83% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for DigitalBridge Group and Chimera Investment, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DigitalBridge Group	1	2	5	2	2.80
Chimera Investment	1	2	1	0	2.00

DigitalBridge Group currently has a consensus price target of $16.93, suggesting a potential upside of 19.25%. Chimera Investment has a consensus price target of $15.25, suggesting a potential upside of 17.84%. Given DigitalBridge Group’s stronger consensus rating and higher possible upside, equities analysts clearly believe DigitalBridge Group is more favorable than Chimera Investment.

Summary

DigitalBridge Group beats Chimera Investment on 11 of the 18 factors compared between the two stocks.

About DigitalBridge Group

DigitalBridge is an infrastructure investment firm specializing in digital infrastructure assets. They provide services to institutional investors. They primarily invest in data centers, cell towers, fiber networks, small cells, and edge infrastructure. DigitalBridge Group, Inc. was founded in 1991 and is headquartered in Boca Raton, Florida with additional offices in Los Angles, California, and New York New York.

About Chimera Investment

Chimera Investment Corporation operates as a real estate investment trust (REIT) in the United States. The company, through its subsidiaries, invests in a portfolio of mortgage assets, including residential mortgage loans, agency residential mortgage-backed securities, non-agency residential mortgage-backed securities, agency mortgage-backed securities secured by pools of commercial mortgage loans, business purpose and investor loans, and other real estate related securities. It invests in investment grade, non-investment grade, and non-rated classes. The company qualifies as a real estate investment trust (REIT) for federal income tax purposes. As a REIT, it intends to distribute at least 90% of its taxable income as dividends to shareholders. Chimera Investment Corporation was incorporated in 2007 and is headquartered in New York, New York.